Delta, British Columbia, April 14, 2020. Desert Gold Ventures Inc. (“Desert Gold” or “the Company”) (TSX.V: DAU, FF: QXR2, OTC: DAUGF) announces that, subject to exchange approval, it will conduct a non-brokered private placement of up to 6,250,000 units at a price of CAD $0.08 per unit (the “Unit”) to raise up to CAD $500,000 (the “Financing”). Each Unit will consist of one common share in the equity of the Company and one half common share purchase warrant (the “Warrant”). Each full Warrant entitles the holder to purchase one additional common share of the Company at a price of CAD $0.15 per common share for a period of three (3) years from the closing of the Financing.
Desert Gold’s CEO Jared Scharf commented, “With the gold market continuing to strengthen, we feel it is time to re-initiate our funding efforts. We chose to competitively price this raise and give priority to those that have supported and followed our evolving story before and during the recent market turmoil. A portion of these funds will be earmarked for auger drilling and continued mapping. Both activities will likely further highlight the potential for the discovery of a material gold deposit at our Senegal Mali Shear Zone Project. The auger drilling, specifically, will test below those laterite covered areas proximal to the east side of the Senegal Mali Shear Zone, where regionally, the largest gold deposits have been discovered to date, including Fekola, Gounkoto and Loulo to the south along strike and Sadiola to the north along strike. In addition to the aforementioned activities and subject to funding availability, diamond, air-core and RC drilling is also planned at the known zones Gourbassi East and West, Barani East and Soa where targets have already been defined.”
The proceeds of the Financing will be used primarily for drilling at the Company’s flagship Senegal Mali Shear Zone Project (the “SMSZ Project”) in Western Mali (see Figure 1. below) and for general working capital purposes. The Company may pay a finder’s fee to qualified individuals in respect to the Financing. Securities issued as a result of the Financing will be subject to a statutory hold period.
This press release contains certain scientific and technical information. The Company is solely responsible for the contents and accuracy of any scientific and technical information related to it. Don Dudek, P.Geo a director of Desert Gold and a Qualified Person under National Instrument 43-101, has reviewed and approved the scientific and technical information contained in this press release.
Figure 1. Senegal Mali Shear Project Property Scale Compilation Map*
*All gold grades over width, with the exception of the Soa prospect, represent drill holes with the true widths, for most holes, ranging from 70 to 95%. **The Soa Prospect true widths are unknown. Estimated true widths for the Berola Prospect are unknown. True widths at the Gourbassi Zones are estimated to range from 60% to 90%.
ON BEHALF OF THE BOARD
President & CEO
About Desert Gold
Desert Gold Ventures Inc. is a gold exploration and development company which holds 2 gold exploration permits in Western Mali (SMSZ Project and Djimbala) and its Rutare gold project in central Rwanda. For further information please visit www.SEDAR.com under the company’s profile. Website: www.desertgold.ca
This news release contains forward-looking statements respecting the Company's ability to successfully complete the Offering. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements, including the inability of the Company to successfully complete the Offering. These uncertainties and risks include, but are not limited to, the strength of the capital markets, the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; and the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations. Risks and uncertainties about the Company's business are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. The Company assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the united states securities act of 1933, as amended, and may not be offered or sold in the united states or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such act.